NY Proposes New DFS Regulation; What Is The Tribal Position On Sports Betting?

Written By Steve Ruddock on August 11, 2017 - Last Updated on June 27, 2018

After a torrid start to August, legislative momentum on the daily fantasy sports and sports betting front slowed down a bit last week.

The two big stories that happened during the last seven days were:

  • DFS advocates are crying foul over a proposal by the New York State Gaming Commission that would crowbar traditional DFS from prop-betting-type DFS games.
  • It’s becoming more and more apparent that even if the US Supreme Court sides with New Jersey, legal sports betting isn’t going to be as simple as flipping a switch.

Here’s a look at those stories and more.

DFS legislation update

New Jersey expected to legalize DFS soon

The number of states that have passed legislation legalizing and regulating DFS will most likely grow in the next week or two, if, as is expected, New Jersey enacts the DFS bill that is on Gov. Chris Christie‘s desk.

The DFS bill tally

The list of states that have passed DFS legislation comprises:

  1. Arkansas
  2. Colorado
  3. Delaware
  4. Indiana
  5. Kansas
  6. Maine
  7. Maryland
  8. Massachusetts
  9. Mississippi
  10. Missouri
  11. New Hampshire
  12. New York
  13. Vermont
  14. Virginia
  15. Tennessee

The number of states that have introduced legislation seeking to legalize DFS in 2017 has stalled at 25, while the number of states with active legislation stands at 13:

  1. Alabama
  2. Arkansas
  3. Connecticut
  4. Delaware
  5. Florida
  6. Georgia
  7. Hawaii
  8. Illinois
  9. Iowa
  10. Kentucky
  11. Maine
  12. Michigan
  13. Minnesota
  14. Montana
  15. Nebraska
  16. New Jersey
  17. New Hampshire
  18. North Carolina
  19. Ohio
  20. Oregon
  21. Pennsylvania
  22. Rhode Island
  23. Texas
  24. Vermont
  25. Washington

Legal Sports Report’s legislative tracker has up-to-the-minute updates on all DFS legislation.

New York may narrows its definition of legal DFS

With new fantasy sports games springing into being, New York regulators are trying to differentiate between traditional DFS contests and some of the new products that more resemble prop betting.

The proposed regulation states:

5602 (Permissible Contests): Criteria for permissible contests. These would include statutory standards as well as a requirement that contests shall not be based on proposition betting and shall not have the effect of mimicking proposition betting. Contests in which a contestant chooses whether an individual athlete or a single team will surpass an identified statistical achievement would be prohibited.

Legal Sports Report has more on this story here.

Sports betting legalization update

Tribal involvement further complicates sports betting

Last week we tried to explain the tribal position on sports betting, and suffice it to say, it was hard to pin down.

This week more information has come to light, but it seems like the more tribes try to clarify their position, the more convoluted it becomes.

The latest twist is that there simply isn’t a consensus among tribes on the best path forward with sports betting. So, even though a national group is speaking for its coalition, it appears tribal positions on sports betting will be case-by-case.

How many states will preemptively pass sports betting bills?

Gambling Compliance wrote a story (paywall) on two states that are locked and loaded, and just waiting for New Jersey to win its sports betting case. In addition to those states, several other states will likely make their own preparations should the legal landscape change on the federal level.

Sports betting legislation

Twelve states have either taken up the fight to repeal PASPA, or are exploring legislation that would authorize sports betting if federal sports betting laws were to change:

  1. California
  2. Connecticut
  3. Hawaii
  4. Maryland
  5. Michigan
  6. Mississippi
  7. New Jersey
  8. New York
  9. Oklahoma
  10. Pennsylvania
  11. South Carolina
  12. West Virginia
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Steve Ruddock

Steve Ruddock is a veteran of the gambling industry, having been a longtime contributor to numerous publications both online and off centered on the regulated US online gambling industry. Steve is based in Massachusetts.

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